Financial statements Essay Example for Free

Financial statements Essay1) Which of the following statements is true?2) Notes to the pecuniary statements include which of the following3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities?4) If the retained earnings fib increases from the beginning of the year to the end of the year, then5) If services are rendered on account, then6) An investment by the stock(a)holders in a business increases7) Using accrual accounting, expenses are recorded and describe only8) A small company may be able to justify using a cash seat of accounting if they crap9) Stockholders equity can be described as claims of10) Common stock is reported on the11) The Vintage Laundry Company buyd $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June12) O n July 1 the Fisher Shoe Store paid $15,000 to Acme real estate for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount.13) Use the following data to confine the total dollar amount of assets to be classified as current assets.14) Use the following data to calculate the current ratio. KoonceOffice Supplies Balance Sheet December 31, 2012 Cash $130,000 Accounts collectable $140,000 Prepaid Insurance 60,000 Salaries Payable 20,000 Accounts Receivable 100,000 Mortgage Payable 160,00015) In horizontal analysis, each item is expressed as a percentage of the16) When a change in depreciation method occurs17) Which of the following statements is true with respect to financial statement reporting for all cases when a company changes from one acceptable accounting method to some other?18) Which of the following would be considered a change in accounting principle?19) From an internal control standpoint, the asset most susceptible to improper diversion and use is2 0) A very small company would have the most difficulty in implementingwhich of the following internal control activities?21) The reconciliation of the cash register attach with the cash in the register is an example of22) Deposits in transit23) Which of the following items on a verify reconciliation would require an adjusting entry on the companys books?24) Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry25) Why do pension and reciprocal funds invest in debt and equity securities?26) Which of the following is a debt security?27) Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage house commission of $2,000. The journal entry to record this investment includes a debit to28) Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. Assume Holmes pays inte rest semiannually and the July 1 entry was done correctly. The journal entry at December 31, 2012 would include a credit to 29) A company that owns more than 50% of the common stock of another company is known as the30) If a parent company has two wholly own subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company?